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EU Divided Over Response to Trump’s Tariff Threats
While the European Union presents a united front against U.S. President Donald Trump’s newly announced tariffs on steel and aluminum, internal divisions are emerging over the best course of action. Some member states, led by France, are pushing for swift retaliatory measures, while others, including Germany, Italy, and Hungary, advocate for a more cautious approach focused on dialogue.
Trump’s Tariffs Spark Urgent EU Talks
Trump’s latest tariff decision, announced Monday, includes a 25% levy on imported steel and aluminum, citing national security concerns. The executive order, set to take effect on March 12, was followed by another announcement on Thursday: a plan for reciprocal tariffs on U.S. trading partners, to be determined on a country-by-country basis in the coming weeks.
In response, the European Commission vowed on Friday to react “firmly and immediately”, setting the stage for internal debate within the EU over how to proceed.
Hawks vs. Doves: A Divided Approach
Following an emergency video conference of EU trade ministers on Wednesday, the rift between hawks and doves became apparent.
- France, leading the hawkish camp, argues that strong and immediate retaliation is necessary to prevent excessive concessions to the U.S. “Every U.S. measure announced calls for an immediate response,” one official told Euronews.
- Germany, Italy, and Hungary, in contrast, prefer a more measured approach, advocating for continued negotiations with Washington rather than hastily imposing countermeasures. A diplomat from this group emphasized the importance of avoiding a tit-for-tat trade war.
Hungary, where Prime Minister Viktor Orbán maintains close ties with Trump, is pushing for no retaliatory action before March 12. Meanwhile, Italy insists on keeping diplomatic channels open before resorting to tariffs.
EU’s History of Retaliation and Future Strategy
The EU has previously responded to Trump-era tariffs. In 2018, the bloc countered U.S. duties on European steel (25%) and aluminum (10%) with €2.8 billion in tariffs on American goods. A temporary truce was brokered under President Joe Biden, but that agreement expires at the end of March 2024.
Since then, the EU has bolstered its trade defenses, introducing anti-coercion measures that allow restrictions on public procurement, services, and intellectual property rights in retaliation to trade threats.
Strengthening Global Trade Partnerships
Amid tensions with the U.S., the EU is working to expand its global trade network. Recent agreements include:
- A free trade deal with Mercosur nations (Argentina, Brazil, Paraguay, Uruguay)
- A trade pact with Switzerland, finalized in December
- A renewed agreement with Mexico, completed in January
- Reopened negotiations with Malaysia
Later this month, all EU Commissioners will travel to India for talks on a strategic partnership, including discussions on trade cooperation.
Outlook: Trade Tensions or Compromise?
With Trump signaling broader trade policy changes, EU officials, including Trade Commissioner Maroš Šefčovič, have warned that the bloc must prepare for more than just steel and aluminum tariffs.
Following a meeting with Canadian Prime Minister Justin Trudeau, European Council President António Costa reinforced the EU’s preference for diplomacy, tweeting: “Trade agreements are better than trade tariffs.”
Whether the EU opts for immediate retaliation or ongoing negotiations, its ability to maintain a cohesive response will be crucial in shaping its economic future amid a shifting global trade landscape.
News
Democrats Face Internal Battle Over Party Direction Ahead of US Midterms
With just over two months remaining before the US midterm elections, Democrats are facing a political challenge that extends beyond their efforts to oppose President Donald Trump. The party is divided over its policy direction, with progressives and moderates offering competing ideas about how Democrats can regain support.
The divide has become increasingly visible during this year’s primary elections. Progressive candidates have secured several notable victories, raising hopes among the party’s left wing. Moderates, however, are warning that candidates associated with the progressive movement could struggle in competitive districts and Republican-leaning states.
Both factions say the 2024 election defeat exposed weaknesses in the party, but they draw different lessons from it.
Progressives argue Democrats were too cautious and failed to offer voters a strong economic alternative. They want the party to focus on issues such as lower healthcare costs, higher wages, stronger unions and greater restrictions on corporate power.
Moderates say Democrats need to avoid positions that Republicans can portray as extreme. They believe candidates must appeal to independent and conservative-leaning voters, particularly in closely contested states.
Recent primary results have intensified the debate. In Florida, democratic socialist Angie Nixon defeated moderate Alex Vindman in the Democratic Senate primary. In Michigan, progressive Abdul El-Sayed defeated establishment-backed Haley Stevens, while in California, Aisha Wahab won a special congressional election after facing substantial spending from outside groups.
Progressives view the results as evidence that Democratic voters are becoming less interested in traditional party leadership.
However, winning a primary does not guarantee success in November. Florida presents a major test for Nixon because the state has shifted strongly toward Republicans in recent elections. Her nomination has already prompted debate among Democrats over whether the party should embrace the democratic socialist label.
At the same time, Democrats in Florida selected former Republican David Jolly as their candidate for governor, highlighting the ideological range within the party.
Polling suggests many voters support economic policies associated with progressives, including higher taxes on corporations and wealthy individuals, government-supported healthcare, paid family leave and a higher federal minimum wage. Yet support for these policies does not necessarily mean voters will choose candidates who identify as progressive.
Democratic voters can hold moderate political identities while supporting populist economic measures. Some cultural issues associated with the left have attracted less support among swing voters.
This creates an opportunity for Democrats to build an economic message centred on affordability and corporate power while avoiding divisive cultural battles.
Trump remains another major factor. Republicans are using progressive primary victories to argue that Democrats are moving toward socialism, while Democrats have an incentive to keep attention on Trump’s record and economic concerns.
The November results could shape the party’s direction well beyond the midterms. A strong Democratic performance could strengthen either moderates or progressives, depending on which candidates succeed.
The outcome may also influence the 2028 presidential race. For now, Democrats face a shared objective: defeating Republicans in November while managing a growing dispute over what the party should become.
News
Two Killed After Car Deliberately Hits Pedestrians in Caen
Two people were killed and several others injured after a car was deliberately driven into a group of pedestrians outside a railway station in Caen, Normandy, French authorities said.
The incident happened near Caen railway station, where a vehicle struck people in a street opposite the station. Calvados prefect David Claviere said the driver had deliberately driven into pedestrians.
Seven people were reported to be in critical condition, while three others suffered less serious injuries. Emergency services and security personnel quickly responded to the scene, which was later sealed off as investigators began examining what happened.
According to French media reports, the vehicle was a black German-made car that struck people waiting near a tram stop. The incident reportedly followed an altercation, although authorities have not established a clear motive.
The suspect, a 26-year-old man born in Russia, fled the scene after the crash. Police arrested him later in the evening in Ouistreham, about 20 kilometres from Caen.
Authorities said the suspect was not previously known to France’s intelligence services. He was known to police only in connection with traffic offences.
Senior Caen security official Bruno Coutanceau said the victims were believed to be men between the ages of 17 and 40. Most of those injured were thought to be foreign nationals.
French authorities have opened an investigation into murder and aggravated intentional assault. Investigators are expected to examine witness statements, surveillance footage and other evidence to establish the circumstances leading to the incident and determine whether it was linked to the reported altercation.
The attack caused significant disruption around the railway station as emergency workers treated the injured and police secured the area.
Caen Mayor Aristide Olivier described the incident as an “absolute tragedy” and praised emergency and security services for their rapid response.
The authorities have not indicated that the suspect was linked to any extremist organisation, and his motive remains under investigation.
The incident has prompted heightened security around the station while investigators continue their work. Officials are expected to provide further details as the investigation progresses and the condition of those critically injured becomes clearer.
News
SpaceX Announces $100 Billion Louisiana Starbase to Expand Starship Launches
Elon Musk’s SpaceX has announced plans to build its largest launch facility yet in Louisiana, a $100 billion project designed to support thousands of Starship missions each year and significantly expand the company’s presence beyond Texas and Florida.
The new facility, named Starbase, Louisiana, will cover about 125,000 acres, or 50,585 hectares, in the southern US state. Construction is expected to begin next year, with SpaceX targeting its first Starship launch from the site in 2029.
SpaceX said the facility would support missions to Earth orbit, the Moon, Mars and beyond. The project forms part of the company’s broader plans to increase launch capacity as it pursues ambitious goals in space exploration, satellite services and artificial intelligence.
The company said the Louisiana base would create more than 3,000 direct jobs. Louisiana Economic Development estimates that a further 8,100 indirect jobs could also be created through related economic activity.
According to the agency, workers at the facility are expected to earn average wages nearly three times higher than the current regional average. Officials said the project could establish Louisiana as a major centre for next-generation aerospace operations.
“The historic project will establish Louisiana as a global hub for next-generation aerospace, with the capacity and infrastructure needed to dramatically increase launch frequency and expand access to space,” the Louisiana Economic Development agency said.
The Louisiana site will share its name with SpaceX’s existing Starbase operations in Texas. In 2025, residents in part of Cameron County, where the company carries out testing and development work, voted to incorporate the area as a city called Starbase.
The announcement comes as SpaceX pursues an aggressive expansion strategy. Musk has outlined plans for missions to Mars, expanded Starship operations and major investments in artificial intelligence and computing infrastructure.
Earlier this month, SpaceX and Musk’s electric vehicle and robotics company Tesla announced plans to build a $16.8 billion AI chip manufacturing complex in Texas known as Terafab. The proposed facility is intended to support growing demand for computing power for AI, robotics and related technologies.
SpaceX is also facing increasing scrutiny from investors following its public market debut in June, when its shares began trading on the technology-focused Nasdaq in what was described as the largest stock market debut in history.
The company’s stock has fallen more than 30% from the highs reached shortly after trading began, although it remains above its initial offer price of $135.
Investors are now watching whether SpaceX can balance the enormous cost of its expansion with the need to deliver sustained profits. The planned Louisiana Starbase represents one of the company’s biggest commitments yet, with construction expected to begin in 2027 and launch operations scheduled to follow two years later.
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